By Aleesia Forni
New York, Nov. 17 – Time Warner Inc. sold $900 million of bond (Baa2/BBB/BBB+) in new and reopened tranches on Tuesday, according to an informed source and a 424B3 filed with the Securities and Exchange Commission.
The sale included a $600 million tranche of 3.875% notes due Jan. 15, 2026 sold with a spread of 162.5 basis points over Treasuries.
A $300 million tap of the company’s existing 4.85% debentures due July 15, 2045 sold at 200 bps over Treasuries.
The original $600 million issue priced at Treasuries plus 195 bps on May 28, 2015.
Both tranches sold at the tightest side of guidance.
Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners.
The notes are guaranteed by Historic TW Inc. In addition, Home Box Office, Inc. and Turner Broadcasting System, Inc. will guarantee Historic TW’s guarantee of the notes.
Proceeds will be used for general corporate purposes.
The media company is based in New York.
| Issuer: | Time Warner Inc.
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| Guarantor: | Historic TW Inc.
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| Issue: | Notes
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| Amount: | $900 million, upsized form $750 million
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| Bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Trade date: | Nov. 17
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| Settlement date: | Nov. 20
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| Ratings: | Moody’s: Baa2
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| Standard & Poor’s: BBB
|
| Fitch: BBB+
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| Distribution: | SEC registered
|
|
|
| Notes due January 2026
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| Amount: | $600 million
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| Maturity: | Jan. 15, 2026
|
| Coupon: | 3.875%
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| Spread: | Treasuries plus 162.5 bps
|
| Price guidance: | Treasuries plus 165 bps area (+/- 2.5 bps), tightened from Treasuries plus 180 bps area
|
|
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| Bonds due 2045
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| Amount: | $300 million
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| Maturity: | July 15, 2045
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| Coupon: | 4.85%
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| Spread: | Treasuries plus 200 bps
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| Price guidance: | Treasuries plus 205 bps area (+/- 5 bps), tightened from Treasuries plus 210 bps area
|
| Total issue size: | $900 million, including $600 million priced on May 28, 2015 at Treasuries plus 195 bps
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